Is Six Sigma Just For Large Companies? What About Small Companies?

Now, we'll look at each of these areas with application to small companies. After each major requirement will be a synopsis and discussion around whether it is easier to implement Six Sigma Quality in a small company or a large company.

Application of Six Sigma to Small Companies
Management Team Buy-In and Support  Easier
Compared to large companies, small company management teams are typically closer on a personal basis. Pulling the small company team together for a short meeting can be done in minutes, as opposed to days for a large company. Because smaller companies are more agile, it is typically easier to achieve management team agreement that a standard methodology can help achieve results. Although politics are always present, less may be required in a smaller company to come to agreement and buy-in for implementing Six Sigma Quality.

Education and Training  Harder
Although the costs presented on page 1 are somewhat standard, buying in bulk always produces a discount. This is the main reason I believe education and training is harder (costlier) for smaller companies. Time is money -- time away from the office is lost revenue and production for both small and large companies alike. But the return on investment is a function of the potential savings of the business. For a behemoth like GE or Motorola, standardized processes can yield enormous savings -- a large potential exists prior to implementing Six Sigma. For a smaller companies, the savings potential may not be as great. The return on investment may not be as quick or as significant. You know your business and processes better than anyone else. How great are the potential savings?

Resource Committment  Slightly Harder
The key issue here is employee time. As mentioned above, time is money for both employees that are partially assigned to teams and project leaders. BUT -- we must remember to see the forest through the trees. Any time dedicated to process improvement will be recouped in process productivity going forward for all time. But it again boils down to the potential savings that are available in your business.

Link to Compensation  Easier
No brainer. Being able to link compensation to Six Sigma implementation is much easier in a small company, compared to a larger company. Decisions in general are quicker for small companies, that's why they are more agile. The key will be applying the rigor and written procedures that larger companies do well. Formal performance appraisal systems need to identify what is to be accomplished, what success looks and feels like, and how an employee will be compensated. Just be sure to involve your Human Resources representative to ensure that employee responsibilities are being modified in the appropriate manner.

Only after reviewing your unique business landscape will you be able to determine if your small business climate is right for implementing Six Sigma Quality. I hope the above discussion triggers your own thoughts and discussions within your business. Good luck!

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